KUALA LUMPUR – The Cabinet has agreed that micro and small food and beverage (F&B) businesses can continue purchasing subsidised liquefied petroleum gas (LPG) without needing to apply for a scheduled controlled goods permit, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
He said the government is reviewing the Control of Supplies Regulations (Amendment) 2021 to ensure the rules are clearer and more practical for micro and small traders, particularly in the F&B sector, who rely heavily on subsidised LPG for daily operations.
Armizan’s response followed concerns raised by opposition MPs and MCA president Datuk Seri Wee Ka Siong, who claimed that the enforcement operation – Op Gasak – would burden small F&B traders and effectively cut off their access to subsidised cooking gas.
“The government has never intended to burden the rakyat, especially our micro and small traders,” Armizan said at a press conference in Putrajaya today.
“That’s why the Cabinet has decided to review the regulations to make them clearer and more practical for this group.”
He clarified that the planned amendments would consider the needs of micro and small businesses while ensuring enforcement remains effective in preventing subsidy abuse.
Currently, the Control of Supplies Regulations (Amendment) 2021, or PPKB (Amendment) 2021, states that any business using more than 42kg of LPG at any one time must apply for a scheduled controlled goods permit.
Armizan said a technical committee chaired by his ministry’s secretary-general has been tasked with reviewing the regulation and gathering feedback from stakeholders.
“In this transition period, we will not take legal action against micro and small F&B traders using subsidised LPG cylinders,” he said.
“They can continue their operations as usual without fear of enforcement while we work on improving the policy.”
However, he stressed that enforcement under Op Gasak would continue, focusing on industries and individuals misusing subsidised LPG through illegal decanting or smuggling.
“We are going after those who profit illegally by transferring gas from subsidised to non-subsidised cylinders, or who use it for purposes not intended under the subsidy,” he said.
“This includes medium and large-scale industries that have been misusing the system.” Op Gasak, which runs until Oct 31, is focused on stopping such illegal activities.
Armizan also denied allegations that the operation was a backdoor attempt to reduce or remove LPG subsidies.
“The LPG subsidy remains in place. What we are doing is ensuring it reaches those who truly need it, not those exploiting it for profit,” he said.
He added that a full report from Op Gasak will be among the key references in the eventual review of the PPKB (Amendment) 2021 regulation. – June 5, 2025